Individuals and firms managing a business enterprise established mainly for the purpose of providing any service other than professional services.

Extent of Finance

Individual limits for working capital will be fixed depending upon the requirement of activities pursued. Advances for acquisition, construction, renovation of House Boats and other tourist accommodation will be financed. Advances for distribution of mineral oils will also be considered under this category

Rate of Interest

As per prevailing rates from time to time

Margin

No margin up to Rs.25000/-
15 to 25 percent for credit limits exceeding Rs.25000/-

Security

Assets created out of Bank’s finance
Collateral security as per Bank’s discretion

Section 8 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 provides for filing of memorandum by a Micro, Small or Medium Enterprise. Sub-section (2) of section 8 stipulates that the form of the Memorandum, the procedure of its filing and other matters incidental thereto shall be such as notified by the Central Government.